For the reason that the housing loan rates hiked from 7% to whooping 12-15% demand for realty land slowed down by almost 30-35% in the country, after the cut down in Cash Reserve Ratio by RBI and the developers are expecting for the correction in housing loan rates.

Chairman of PS Group said to www.propertykhazana.com that, “In India, housing loan rates is among the highest in the world and we anticipate it to drop by 100 bsp after the cut down in CRR.” Executive Director of JLLM also said that, “The recent decision by RBI is likely to improve liquidity to the primary and secondary realty funding, as striking further de-growth in realty investments in the country.”

“As the banks are lessening the payments to the realty segment from the past 1-2 years and loans went risky, ventures went down after banks fell in lack of liquidity, following the international financial crisis,” said the senior executive of Shristi Infrastructure Development Corporation to www.propertykhazana.com.

Officer of UBI said, “We have short-term hovering loan payments to realty ventures.” The bank’s total loan outstanding with the realty ventures is Rs. 2,800 Crores as on the financial year end. Director of South City and Merlin Projects said that, “Our contact to bank loans in only 10-15%, making us less susceptible to a liquidity chomp.”